One millennial options trader was killing it, then Facebook cost him $180,000

[ironchef]

wah wah poor snowflake...

Don't cry for me Argentina. He was still up ~ $130K last three months after the drop of $180K.

Still better than most.

 

[ironchef]

I'm not the resident options expert, but I don't think you can lose this much by just buying calls.

A one month ATM options prior to drop (8-31-18 call option @ $215 strike) had a premium of ~$10 on 7-25-18, today it has a premium of $ $0.15.

Don't tell me you cannot lose this much by buying calls. Earning plays are extremely risky in options.

 

[Gotcha]

A one month ATM options prior to drop (8-31-18 call option @ $215 strike) had a premium of ~$10 on 7-25-18, today it has a premium of $ $0.15.

Don't tell me you cannot lose this much by buying calls. Earning plays are extremely risky in options.

Fair enough, but do people usually buy this many calls?

It seems to me that since he made his money very quickly, it wasn't just from buying ATM options. I mean how would he go up so quickly if he is just buying ATM calls? He was probably doing something more exotic than this.

 

[Pekelo]

He was YOLOing for 4 months and getting lucky. More balls than brains. Here he explains it:

https://www.reddit.com/r/path%3D%252Fr%252Fwallstreetbets%252Fcomments%252F923ix2%252F

 

[ajacobson]

Ironically now that we see the kind of trades he's making - the fact that he's up doesn't seem to imply out performance. It looks more like luck and poor money management.

 

[SumZero]

Fortunately, I am not under any duress mentally because I am up ~$120k or 75% on a 3 month basis

I always find this line of thinking very strange (and seems quite common). He speaks like if the lost 180K were not his money and all that matters is the profit over the initial amount.

 

[SunTrader]

Everyone is a genius in a bull market ... until.

I would expect he will have more big hits to his account in the near future, while trading off his low battery phone LOL.

 

[Bekim]

They should word it armature options traders holds calls into earnings

 

[ironchef]

Fair enough, but do people usually buy this many calls?

Yes

 

[ironchef]

Ironically now that we see the kind of trades he's making - the fact that he's up doesn't seem to imply out performance. It looks more like luck and poor money management.

Given the choice, I would rather be lucky than be good. Those of us mom and pop retails that trade option profitably in this bull market are also lucky rather than good.